Australian Dollar: USD/AUD (AUD=X) more downside could be difficult and bounce possible
The Pound has been under pressure against the Australian Dollar of late but the GBP/AUD exchange rate is now approaching solid areas of support while much of the price action this week will depend on the RBA interest rate decision.
The Pound lost 2.80% in value against the Australian Dollar over the course of May with the UK currency losing ground against all its major competitors.
The GBP/AUD exchange rate will be trading at 1.8208 at the week’s market open, more than a cent and a half lower than where it was one week ago.
The Aussie gained over the course of the past week as commodity prices rose, with Iron Ore, Australia’s key export rising to above $98.00 a tonne while Sterling fell on fears the next Prime Minister might be a Brexiteer who would look to deliver a ‘Brexit at all costs’ come October 31.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 0.70.
The projected upper bound is: 0.70.
The projected lower bound is: 0.68.
The projected closing price is: 0.69.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 20 white candles and 29 black candles for a net of 9 black candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.5126. This is not an overbought or oversold reading. The last signal was a buy 9 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 44.33. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 10 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 94. This is not a topping or bottoming area. The last signal was a buy 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
FOREX AUD= closed down -0.001 at 0.693. Volume was 98% below average (consolidating) and Bollinger Bands were 17% narrower than normal.
Open High Low Close Volume___
0.693 0.694 0.692 0.693 2,197
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 0.69 0.70 0.71
Volatility: 4 7 10
Volume: 79,957 90,774 104,970
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FOREX AUD= is currently 2.7% below its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of AUD= at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on AUD= and have had this outlook for the last 27 periods.